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16-19 Revenue and Related Transactions. During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).

1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care, $928,000 was paid by uninsured patients, and $8,222,000 was billed to Medicare, Medicaid, and insurance companies.
2. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses.
3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).
4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.
5. A total of $965,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; medical seminars, 125,000; unrestricted transfers from the Evanston General Hospital Foundation, $75,000; and fees for medical transcripts, $55,000.
6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170.

Required

1. Record the preceding transactions in general journal form.
2. Prepare the unrestricted revenues, gains, and other support section of Evanston General Hospital's statement of operations for the current year, following the format in Illustration 16-4.
3. On which statement would restricted contributions be reported? Explain.

16-19 Revenue and Related Transactions. During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). 1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care, $928,000 was paid by uninsured patients, and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. 2. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. 3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1). 4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. 5. A total of $965,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; medical seminars, 125,000; unrestricted transfers from the Evanston General Hospital Foundation, $75,000; and fees for medical transcripts, $55,000. 6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170. Required a. Record the preceding transactions in general journal form. b. Prepare the unrestricted revenues, gains, and other support section of Evanston General Hospital's statement of operations for the current year, following the format in Illustration 16-4. c. On which statement would restricted contributions be reported? Explain